sears analysis

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Business and Industry Analysis Business Analysis Sears Roebuck & Co., founded by R. W. Sears in 1886, is a multi-line retailer that offers a variety of merchandise and related services. It operates primarily in the United States, Puerto Rico, and Canada. Sears, Roebuck, & Co. is ranked fifth in 3 the retail market, behind: Wal-mart Stores Inc., Target Corp., Kohl’s Corp, and JC Penney Company Inc. In 2003, the company was divided into three domestic segments: Retail and Related Services, Credit and Financial Products, and Corporate and Other. In addition the company has one international segment, Sears Canada. The Retail and Related Services segment focuses principally on merchandise sales and supporting activities, such as: service…show more content…
For example, there are many producers for all kinds of apparel and home products. The one thing that Sears does to keep their customers willingness to switch down is providing the lowest possible price and giving the greatest service available. Sears again uses their customer service to deter customers from switching over to a competitors product. Even though, there is an existing threat there, Sears tries to do everything possible to avoid it. 5 Bargaining Power of Buyers In this company this could go both ways, for instance like the apparel and small home products would be more price sensitive, but things like in the automotive section could become more costly because of higher switching cost. Although, things could be a little different in terms of bargaining power from product to product, Sears still has an inside hand with relative bargaining power. They have been working with their suppliers so long that they have developed strong relationship that help them lower their prices by increasing their buying volume, which in turn lets them buy for less. Bargaining Power of Suppliers On the suppliers side things would be about the same, because of the many different products they sell it could be a little different from supplier to supplier. Then again Sears has been working with its suppliers so long that it has gained barging power over them to allow them to insure low prices when it comes to their supplies.
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